Did that job actually make money?
Take off the parts and every hour, and see what’s left.
- For
- See what each job really kept, so you price the next one right.
- When
- When a job is paid, or runs over
Try it
An 1,800 job, 600 of parts, 12 hours at 65: 420 kept, 23% of the price.
Kept = price − parts − hours × what an hour costs you.
Count every hour, the trips included.
Worked out
| Hours | Hours cost | Kept | Of the price |
|---|---|---|---|
| 6 | 390 | 810 | 45% |
| 10 | 650 | 550 | 31% |
| 12 | 780 | 420 | 23% |
| 16 | 1,040 | 160 | 9% |
Easy to get wrong
- Costing hours at your pay alone.
- Forgetting the trip back for parts.
- Checking only the jobs that felt bad.
- Looking at the price, not what’s left.
The tool for it
Questions
What does an hour cost me?
Your pay plus your costs, spread over the hours you bill.
What share should I keep?
Your own target; type it in, and watch it job by job.
Should I check every job?
At first, yes. Then the kinds that often run over.
What if a job lost money?
Find out why: the price, the hours or the parts. Fix the next quote.
Do I count the drive?
Yes, if it’s time you couldn’t spend on another job.
What about warranty call-backs?
Count them against the first job; they come out of its profit.
Is profit what I take home?
No: tax comes out, and some of it pays for slow months.
How do I know the hours?
From the hours log, written down on the day of the job.